22nd Nov 2005 07:03
Premier Oil PLC22 November 2005 PREMIER OIL PLC ("Premier") Mauritania Drilling Update Premier reports the following in relation to its operations in PSC Area Boffshore Mauritania. The 'Stena Tay' drill rig finished wireline log acquisition on Labeidna-1exploration well, including the recovery of oil and rock samples to surface. Thewell was plugged and abandoned as planned. The 'Stena Tay' drill rig wasreleased on 20 November 2005 to drill a well for another operator. Preliminary evaluation of the data acquired in Labeidna-1 indicates that thewell intersected a gross oil bearing interval of 116 metres, comprising a seriesof thin but high quality sands interbedded with claystones. Interpretation ofimage logs and magnetic resonance logs and other analytical work is continuingto quantify the total net pay thickness. These results will be incorporated intoan assessment of the commercial potential of the Labeidna accumulation. Simon Lockett, Chief Executive, commented: "An oil discovery within tie-back distance to the Chinguetti field is a positiveresult. Work is proceeding towards a decision on the next steps to determine ifcommerciality can be achieved." 22nd November 2005 ENQUIRIESPremier Oil plc Tel: 020 7730 1111Simon LockettTony Durrant Pelham PR Tel: 020 7743 6673James Henderson Background For Editors: Premier Oil plc is a leading independent oil and gas company with producinginterests in the UK, Indonesia and Pakistan and an oil development inMauritania. Exploration and appraisal is ongoing in the UK, South and South EastAsia and Africa. The 2005 drilling programme of approximately 12 wells is well progressed. Priorto the Labeidna-1 well, three successful wells have been completed earlier thisyear; the first, a flow test on an appraisal well on the Tiof field inMauritania; the second, a discovery and flow test from the Al Amir-1 explorationwell in Egypt; and the third, a discovery and appraisal at the Tevet-2 well inMauritania. Further wells are planned to be drilled in the remainder of 2005 andin the first half of 2006 in Mauritania, Egypt, Indonesia, Guinea Bissau,Vietnam and the UK. The current partners and interests in PSC A and PSC B in Mauritania are:Company PSC A PSC B Chinguetti Exploitation Perimeter1 % % %Woodside 53.846 53.846 47.384BG Group 13.084 11.630 10.234Hardman Resources 24.300 21.600 19.008Fusion Mauritania A3 4.615 - -Premier - 9.231 8.123ROC Oil 4.155 3.693 3.250Groupe Projet Chinguetti2 - - 12.000 1 The Chinguetti Exploitation Perimeter was granted in May 2004 under the termsof the Production Sharing Contract for Area B (PSC B) and contains theChinguetti oil development. The Government of Mauritania exercised its right toparticipate in this area effective from 9 November 2004 and retains the right toparticipate in new developments outside this area. 2 Group Projet Chinguetti is an entity set up to represent the interests of theMauritanian Government in the Chinguetti oil development. 3 Premier will take up 100% ownership of Fusion Mauritania A (currently owned bySterling Energy and Premier) on completion of the transaction announced on 28May 2003. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
PMO.L